Dexco (DXCO3) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 reached BRL 8.249 million, with pro-forma adjusted recurring EBITDA of BRL 2.468 billion, including LD Celulose, and recurring net income of BRL 791 million, up 22% year-over-year.

• 2025 marked the end of a major investment cycle, with a shift to cash generation, deleveraging, and operational efficiency for 2026.

• Strategic actions included asset sales, portfolio simplification, plant closures, and a focus on higher value-added segments.

• Challenging market conditions, high interest rates, and leadership transition prompted decisive restructuring, especially in Sanitaryware and Tiles.

Financial highlights

• Sustaining cash flow was positive at BRL 191 million for 2025, with BRL 136 million generated in Q4.

• Net debt stood at BRL 5,519.2 million, with an average cost of 9.52% of CDI, average term of 5.4 years, and leverage at 3.35x net debt/EBITDA.

• CapEx was 5% below the previous year, mainly due to forestry investments and project reductions.

• Gross margin for 2025 was 20%, stable year-over-year.

Outlook and guidance

• Targeting net debt/EBITDA of 2.7x by end-2026 through asset monetization, cost discipline, and operational improvements.

• Focus on margin recovery in Tiles and Metals, with double-digit margins in ceramic tiles by 2027.

• Continued emphasis on cash generation, working capital optimization, and price discipline.